Offshore companies come in handy when investors need to protect their assets, optimise taxes, and maximise business opportunities. Simply put, an offshore company is a legal entity you set up in a foreign country.

Many large-scale organisations have harnessed the power of using offshore companies to help them legally minimise heavy taxes, generate more profits, and ultimately venture into newer markets. With the help of experts such as SFM offshore, you can easily set up your offshore company and start your international business.

6 Of the Best Jurisdictions for Setting up an Offshore Company

1. The Cayman Islands

If you love watching movies and documentaries about money, you must have heard of The Cayman Islands. It is among the greatest nations in offshore companies and corporations. Following its political and economic stability, the country is a top offshore hub for international commercial services.

Even better, their incorporation procedure is simple, and corporations are exempted from paying business taxes such as capital gains and income taxes. You only need to hire 30% of Caymanian employees, and you can qualify for residency. The country has minimalist laws governing governing exchange, which means you can exchange large amounts of money without restriction. Another renowned island for opening offshore companies is Seychelles, where foreign investors have a lot of tax advantages.

2. The Netherlands

The Netherlands is another country that has signed tax treaties with most countries to incentivise offshore companies. The main advantages include better asset protection, secured privacy, and higher tax benefits. Coupled with a 0% withholding tax on dividends and interest distributions, you will thrive in the Netherlands.

3. Singapore

The government of Singapore has done a good job of promoting the destination for offshore companies. The city-state intends to attract more investors across the globe with exciting benefits. These include better business opportunities, economic stability, political stability, and low taxes. This country is home to an extensive range of multinational corporations aiming to expand into the Asian market; thus, it is a great option.

4. British Virgin Islands

If you are looking for a tax haven for your offshore corporations, the British Virgin Islands are your best shot. The country has set up a cost-effective business establishment process that ensures your company is up and running quickly.

Unlike the Cayman Islands, which are quite expensive in terms of the cost of living, BVI (British Virgin Islands) is more affordable. Here, you do not need to have a board of directors or hold annual shareholder meetings. Even better, the government doesn’t require filing annual returns or financial statements.

5. Cyprus

Cyprus is a perfect destination for modern financial services or access to international markets. It has a tax advantage where the corporate tax rate is 12.5%. This is the lowest across the EU. Like the Netherlands, the country has a 0% tax on dividends, security trading returns, and all real estate sales profits abroad. The country has also signed over 65 taxation avoidance agreements, perfect conditions for you as an offshore company owner.

6. Antigua and Barbuda

Antigua and Barbuda stand out as two of the wealthiest countries in the Eastern Caribbean. It has a steady influx of tourists and has grown into a popular offshore banking jurisdiction. Setting up an offshore company here is easy as it requires no minimum capital. Even better, the shareholders can be foreigners or as you wish.

Setting up an IBC (International Business Corporation) here comes with many tax benefits as you are not required to pay taxes. Furthermore, the company has a fifty-year tax exemption on income, interest, royalties, and dividends.

And there you have it; as you can see, setting up an offshore company doesn’t have to be complicated or illegal. You simply need to identify the best country, follow their legal procedures and get started. It all depends on your motivation. Having an offshore company makes investment more convenient as you maximise profits and minimise avoidable expenditure.